Intercontinental Exchange : Maryland Compliance Renewable Energy Credit Tier 1 Future - Advisory Regarding the Eligibility of Black Liquor Renewable Energy Credits

ICE Futures U.S., Inc.

November 6, 2024

Maryland Compliance Renewable Energy Credit Tier 1 Future - Advisory Regarding the Eligibility of Black Liquor Renewable Energy Credits

On Tuesday, November 5, 2024, the Exchange received a letter from the Public Service Commission of Maryland ("PSC") which confirms that any black liquor renewable energy credits ("RECs") bought and sold pursuant to a pre-June 1, 2021 commercial contract ("Qualifying BL RECs") remain eligible for retirement as Tier 1 RECs under Maryland's renewable portfolio standard ("RPS").1 In addition, the PSC also confirmed that such Qualifying BL RECs may be resold and retired as Tier 1 RPS RECs by subsequent purchasers (firms that were not a party to the pre-June 1, 2021 contract). Accordingly, Qualifying BL RECs remain deliverable against the Exchange's Maryland Compliance Renewable Energy Credit Tier 1 futures contract ("Futures Contract"), subject to the conditions set for the below.

Based on the information received from the PSC, a deliverer of Qualifying BL RECs must submit to the receiver at the time of delivery: (i) an unredacted copy of the pre-June 1, 2021 commercial contact under which such Qualifying BL RECs were bought and sold; and (ii) an attestation, in the form determined by the Exchange, that the Qualifying BL RECs being delivered against the Futures Contract were bought and sold under the accompanying pre-June 1, 2021 commercial contract and are eligible for retirement as Tier 1 RPS RECs.2 Both the deliverer and the deliverer's Clearing Member will be required to sign the attestation.

In connection with the foregoing, the Exchange will list a non-Black Liquor Maryland Compliance Renewable Energy Credit Tier 1 Future on December 9, 2024. No black liquor RECs, qualifying or otherwise, will be deliverable against the contract. Additional information on the new contract can be found here.

For information about the delivery requirements for black liquor RECs

Jason Fusco [e-mail] 212-748-4021

For more information about the new contract:

Michael Kierstead [e-mail] 403-974-4339

1. On May 30, 2021, Maryland Senate Bill 65(2021), which excluded black liquor from list of qualifying renewable resources, was passed into law. The Senate Bill contained a provision stating that "existing obligations or contract rights may not be impaired by any way by this Act." This left open the question of whether black liquor RECs bought and sold under contracts entered into prior to June 1, 2021, but which called for delivery in the years following 2021 (e.g. 2022, 2023, 2024) were eligible for delivery and whether such contracts could be resold by the parties to the pre-June 1, 2021 contract and subsequently retired by compliance entities that were not a party to the pre-June 1, 2021 contract.
2. Subject to regulatory review.

View All Notices / Contact Us / Media Inquiries

© 2024 Intercontinental Exchange, Inc. The following are trademarks of Intercontinental Exchange, Inc. and/or its affiliated companies: Intercontinental Exchange, ICE, New York Stock Exchange and NYSE. For more information regarding trademarks owned by Intercontinental Exchange, Inc. and/or its affiliated companies see: intercontinentalexchange.com/terms-of-use

Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading "Key information Documents (KIDS)," commencing January 1, 2019.